Question

What payment 7 months from now would be equivalent in value to a $3,300 payment due 23 months from now? The value of money is 2.7% simple interest. Round your answer to 2 decimal places. Show all work and how you arrive at the answer..

294

likes1470 views

Fred

4.4

104 Answers

Solution:
For simple interest, A=P\left(1+rt\right) For payment due 23 months, 3300=P\left(1+\left(0.027\right)\left(23\right)\right) P=\frac{3300}{1+\left(0.027\right)\left(23\right)} P\approx2035.78 For payment due 7 months, A=2035.78\left(1+\left(0.027\right)\left(7\right)\right) A\approx2420.54
Answer: $2,420.54

Frequently asked questions (FAQs)

What is the limit, as x approaches 4, of (3x^2 - 16x + 20)/(x^2 -8x + 16)?

+

Multiply the exponential functions f(x) = 10^x and f(x) = e^x. Evaluate the product for x=2.

+

What is the area of a triangle with side lengths 5, 12, and 13 using Heron's Formula?

+

New questions in Mathematics